Cognex Corporation (CGNX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	825,325	1,004,230	1,034,800	812,977	725,116
Property, plant and equipment	US$ in thousands	105,849	79,714	77,546	79,173	89,443
Fixed asset turnover		7.80	12.60	13.34	10.27	8.11

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $825,325K ÷ $105,849K
= 7.80

Fixed asset turnover measures the efficiency of Cognex Corp. in generating sales revenue relative to its investment in fixed assets. The trend of the fixed asset turnover ratio over the past five years shows some fluctuations. In 2023, the fixed asset turnover ratio declined to 7.91 from 12.62 in 2022, indicating that the company generated less revenue per dollar invested in fixed assets.

Despite the decrease in 2023, the ratio remains relatively high compared to previous years, suggesting that Cognex Corp. effectively utilized its fixed assets to generate sales revenue. The peak fixed asset turnover ratio of 13.37 in 2021 demonstrates the company's strong operational efficiency in leveraging its fixed assets to drive revenue growth.

Overall, the varying trend in fixed asset turnover implies fluctuations in the company's operational efficiency and asset utilization over the years. Further analysis of the underlying factors contributing to these fluctuations would be beneficial in understanding the company's performance and strategic decisions related to fixed asset management.